1. What to Buy ?
2. When To Buy ?
What to Buy ?
Most usually we all confront with this issue. at times some equities we bought , not move for months or even years.This make frustrate us and we endanger our valuable money.so there are few facts to be consider before buying any stock.
1.Definitely you must select undervalue stocks.
( How to recognise undervalue stocks ? Do some home works and find... E/P , P/BV, RIV,EPS,PEG . etc )
2.Companies paying dividend.
3.Companies with Fair rate of return
4.Company with stable financial situation . i trust at least 1B or more market capitalisation.
When to buy ?
1 I recommend to check Market Beta Value of the selected stock. if the Beta > 1 , that means when the ASPI rise or fall 100 % selected stock will rise or fall according to that number. very close to 1 and over 1 are highly moving stocks in the trend .
2.Check the true strength of the equity use charting software.i trust very close or over 0. is good to buy.
3.Check the RSI .mostly equities under 25 consider are over sold.and equities over 80 considered overbought. select reasonable time frame ( 52 weeks etc ) to predict turning point of the RSI curve.
There are More to consider ....
1. Political Decisions : for an example , new tax release or impose on a sector you wish to invest
2.Sudden Jackpot ! For an example : AEL gain new tender on Highway
Good Luck